Community Development Block Grant Program
About the Program
The City of Paso Robles annually receives about $165,000 in Community Development Block Grant (CDBG) funds from the U.S. Department of Housing and Urban Development (HUD).
The CDBG Program is closely regulated by an array of detailed federal regulations. Some of the most important provisions among these regulations are as follows:
- A requirement that no less than 70% of each year's allotment of CDBG funds be used for projects or programs that benefit low income persons (from households earning 80% or less of the county's median income) (access more information about income levels)
- A limitation restricting the amount of CDBG funds spent on public services to no more than 15% of the City's annual allotment
- Limitations on the types of projects or programs that may be undertaken with CDBG funds
- A provision that the City may use up to 30% of each year's allotment of CDBG funds for projects that "eliminate blight"
- Requirements that CDBG-funded projects be completed in a timely manner (generally within 1.5 years of their award)
- Requirements to comply with federal environmental laws, labor laws (prevailing wages), and procurement regulations
- Restrictions against using CDBG funds to pay for projects or programs that have already been initiated
Eligible Projects & Programs
This is a brief list of the most common eligible uses of CDBG funds. It is not a complete list. A complete list can be found in Sections 24 Code of Federal Regulations (CFR) 570.201, 202, and 203, a copy of which can be obtained either from the Housing Programs Office or the U.S. Government Publishing Office (GPO).
- Acquisition of property for public facilities or for housing restricted to low income persons
- Construction of street improvements for public facilities or for housing that is restricted to low income persons
- Construction or rehabilitation of public and quasi-public buildings and facilities
- Operations of public services (but not for paying for the cost of on-going governmental services)
- Rehabilitation of commercial buildings provided that the work done is limited to renovation of the exterior or to correct a building code violation
Ineligible Projects & Programs
Per Sections 24 CFR 570.200 and 570.207 of federal regulations, CDBG funds may not be used for the following:
- Construction costs for new housing (that's what HOME funds are for)
- Construction or rehabilitation of buildings used for general government purposes (CDBG funds may be used for other public facilities)
- Maintenance of streets and other public facilities
- Payment of development impact fees for buildings